Foreign investor interest in SA’s banks is set to be bolstered by the latest scandals battering some of the world’s leading lenders, who have been struggling to regain lost credibility among investors and the public since they caused the 2008 financial crisis.
Barclays has been penalised with a record fine of £290m by UK authorities for interest rate manipulation. This triggered a global investigation of more than a dozen banks and led to calls for the resignation of CEO Bob Diamond.
Further fuelling negative sentiment towards lenders is JPMorgan Chase ’s disclosure that its losses from credit derivatives could amount to more than $9bn. The US’s biggest bank had pegged the losses at $2bn last month.
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The London-listed shares of Barclays, which owns Absa , plunged as much as 18 percent yesterday. Over the past 12 months, its stock has dropped 32 percent. Stocks of its rival, HSBC, have declined 8,2 percent in the past year.
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